The Pound intends to rise. Overview for 20.09.2019
On Friday, GBPUSD is growing towards July’s highs.
The British Pound is trading upwards against the USD on Friday afternoon. The current quote for the instrument is 1.2570.
Yesterday, the Bank of England left its interest rate unchanged at 0.75%, just as expected. The regulator’s September meeting was over and the results were rather neutral: all 9 members voted in favor of keeping the regulator’s current monetary policy intact. The BoE Quantitative Easing remained at £435B.
In the comments, the BoE said that the inflation might weaken in case of uncertainty around the Brexit deal. In the future, the regulator is planning to shape its monetary policy based on the Pound exchange rate and the Brexit influence on the country’s economy. As they say in the BoE, prospects of global economic growth deteriorated due to trade wars. The British labor market looks quite tight, but not weak, and that’s good.
According to expectations, the third-quarter GDP may add 0.2%, while the CPI may remain slightly below 2.0%.
Market players decided that this time the BoE’s comments were too soft and, given all these Brexit influences, concluded that the regulator might consider cutting the rate in the future if necessary. The Pound’s response to that was quite positive.
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboMarkets bears no responsibility for trading results based on trading opinions described in these analytical reviews.
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